In a stock exchange filing Tesla Inc stated, it has signed a three-year pricing deal with Panasonic Corp for the manufacturing and supply of lithium-ion battery cells at its Gigafactory in Nevada.
The duo have reportedly been in talks to expand the capacity of the joint venture since months.
Earlier in May, Panasonic had hinted it was working to develop new batteries, with potentially higher capacity, with Tesla.
The deal, signed last week which is effective from April 1, 2020, sets the terms for production capacity commitments by Panasonic and purchase volume commitments by Tesla over the first two years of the agreement.
Tesla has also amended the general terms and conditions of its partnership with Panasonic, and modified the term to expire 10 years after Panasonic reaches specific manufacturing thresholds.
In May 2020, Tesla reported its third consecutive quarterly profit, much to the surprise of investors, despite economic challenges facing the economy from the coronavirus pandemic.